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Margin Master - Why do you need it?

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Why do I need Margin Master?

When Margin Master was created for use within my own stores in 2002, the purpose for the software was purely centered on finding and fixing pricing inconsistencies that existed throughout my organization.  Quickly many other dealers jumped on the Margin Master bandwagon and we all saw significant improvements on our bottom lines.  While the additional income was great, it became obvious after personally working with hundreds of retailers, and their specific pricing concerns Margin Master had only partially hit the target. The real target turned out to be more complicated than I originally thought. 

Margin Master has grown not only in complexity, but also in sophistication.  The newest components have a far greater impact to dealers than I had ever dreamed.  In an unofficial survey, I have determined that the typical independent hardware dealer spends between 4 and 8 hours per week managing their pricing.  Many stores have one or more employees dedicated to pricing.  All of this time managing price changes, and making pricing decisions certainly should have a payback!  The reality is there has been no payback.  In fact, poor pricing decisions continue to be made without complete or accurate information.  Inconsistency is typically the rule not the exception.  This has to change and Margin Master is here to help.

Over the last 25 years, technology has changed many things in our lives.  Think of some basic tools of today, like computers, cell phones, and the internet.  Most of the technology commonly accepted today didn't exist 25 years ago.  Funny thing though, when my Dad first got his PACE Computer system (I think in 1981) it used this high tech device called a modem to dial up weekly, and download these things called Hotsheets.  These Hotsheets would effectively maintain our costs and retails.  At the time, it was a big deal.  The scary part of this is that we still depend on the same technology today.   Where has the advancement in pricing technology been?  Now Margin Master and the revolutionary implementation of Pricing Strategies promises to give back all those hours being spent in every store across the country and put a nice bump to the bottom line as well.

Owners and managers spend far too much time working their current pricing system.  With Margin Master, one of the goals is to develop an sound Pricing Strategy, that can be effectively monitored and maintained.  Pricing Strategies put logic back into pricing making it much easier to deliver the desired Pricing Image.  Every store has a Pricing Image.  Many stores are perceived by their customers as having pricing that is out of line - or too high!  These stores have an urgent need to address their Pricing Image.  Image however, should not be achieved by blindly lowering prices.  Many stores are creating favorable Pricing Images - despite being very high priced.  How do they do that?  Pricing Image is affected not only by pricing, but too by the level of service offered in the store.  The stores that maintain higher prices, but offer better service, are perceived as having a better Pricing Image.  What is your store's Pricing Image?

How can Margin Master Help?

Margin Master is simply a tool designed to provide owners and managers with the required information to make intelligent pricing decisions.  Next, Margin Master does what technology does best - it helps organize the pricing logic into a formal Pricing Strategy.  A Pricing Strategy is a list of rules, conditions, and criteria, that determine the what, how, and why to pricing for every Sku in the organization.  After creating the desired Pricing Strategy Rules, Margin Master can easily help enforce the rules.  The best part, Margin Master can help to accomplish this in only a few minutes per month.  Effective, accurate pricing, in minutes per month!  What will we all do with our newly discovered free time?